​​​​​Care Free Holiday? Take Care!

You service your car before you go on holiday. Pack in the essentials like sun screen and groceries to avoid paying inflated holiday prices. But are you pro-active in planning your finances?

We will never start our holiday journey without making sure that all potential risks are covered like our home and cars. When travelling abroad, travel insurance and perhaps the appropriate vaccinations is a must. For those going camping, mosquito repellent is a non-negotiable item.

Every year many South African’s are made aware of the “Arrive Alive” campaigns while driving on our national roads with their holiday destination in sight. The campaigns vision is ‘To develop an effective road safety information portal that will enhance awareness of road safety and save lives.’ Similarly, the role of a financial advisor is also to create awareness of potential risks and to develop an effective financial plan for identified risks.

Apart from other specific risks like travel insurance, what are the risks that should be considered and prevented this holiday season?

Old Mutual’s 2013 claim statistics show that almost one in five death claims paid were caused by accidents, of which 64 % could be attributed to motor vehicle accidents.

More people pass away due to road accidents during the holiday season than any other time during the year, yet so many assume they are immune to to this misfortune.

So what do you need to think about?

An updated and executable will

If you do not have a will or your dependents are minors, what will happen to your assets or retirement fund proceeds when you die?

Beneficiary nominations

It is vital that the beneficiary schedule on your risk cover is updated and appropriate.. Is your (ex) partner, your parents or minor child a beneficiary on your group cover or insurance risk cover? Apart from paying to the wrong beneficiary, divorce as an example, if no beneficiary is appointed the proceeds can only be carried out once a letter of executorship is received and this could take Some weeks can pass before the Master’s Office issue the letter., A beneficiary nomination can ensure quick access to much needed funds for dependents.

Support Services

Are you aware of the support services you have access to should the unforeseen happen? Does your life insurer offer body repatriation from anywhere in the world? Have you saved their contact number on your cell phone?

Severe Illness Cover

Most heart attacks occur in the morning or when people are more relaxed. Are you aware of the financial impact should you be diagnosed with cancer or what type of treatment you will require and how long you will take to recover? Generally employee benefit schemes do not offer severe illness protection. This should be part of your risk portfolio.

Regular health checks

Be pro-active this holiday season and go for a comprehensive health check. Three minutes of discomfort for a mammogram or prostate test is much better than 6 months of radiation and chemotherapy. Most medical aid schemes offer a wellness benefit feature, these allow you to go for health screenings without having to pay for it from your day to day benefits or savings.

Knowing your health status and setting yourself realistic goals, for example, if you run and complete a 21,1km road race you could qualify for a 10% premium discount on life cover. Based on your age, should you quit the nasty habit of smoking, you could potentially save on average up to 30% on your risk premium.

Your health can increase your wealth. A financial advisor can evaluate your financial health and ensure you and your family’s future wealth is protected. Get in touch with him or her immediately. Be safe.